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In a situation like this, his actions could rise to criminal. If he is handling the gun in a careless and reckless manner and pointing the gun at your and other employees and creating a fear of harm or a risk of danger, the police can be called and/or a report can be filed. You can go to the police this morning and have them look into the matter. Of course, this could create problems with your employer, so it may be best if you and the other employees speak with him about this and advise that there is no reason that this gun should be out and displayed at work, since it is not needed or relevant to your work or within the scope and he is creating a dangerous work environment as well.
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